This document discusses the role of attorneys in the music industry. It explains that attorneys draw up and review contracts, advise clients on legal matters, negotiate deals between artists and labels/publishers, and handle corporate issues. Choosing the right attorney is important as they are powerful figures who are involved in many areas of the industry and deals. Good attorneys with strong industry relationships can expedite deals and negotiate favorable terms. Attorney fees typically range from $150-600 per hour but some take percentages of deals or set retainers. Conflicts of interest can arise when an attorney represents clients with opposing interests, so it's important to check for potential conflicts. The document provides tips for evaluating and selecting an attorney.

1. Chapter 5
Attorneys

2. Role of the Attorney
 Draw up, look over contracts and advise
clients about the law
 Involved in structuring deals and shaping
artists’ business affairs
 Negotiating contracts with other team
members, labels, and publishers.
 Deal with corporate issues, trademark and
licensing, lawsuits

3. Choosing a Lawyer
 Lawyers are one of the most powerful groups
in the music industry. Why?
 Lawyers are involved in all areas of the music
industry, can have more clients than
managers, and business managers only deal
in limited financial areas.
 They see more deals, know more about
what’s going on in town; can influence which
manager and business manager get a client.

4. Attorney Clout
 A lawyer with clout can get through to people
that other lawyers can’t
 Record companies can’t ignore calls from
important lawyers or treat them badly on any
one deal. Why?
 A good lawyer with good industry relationships
can get the deal done quicker and with the best
outcome legitimately possible
 Would the above lawyer be worth the extra
expense? Why?

5. Attorney Fees
 Typical hourly rates range from $150/hr for a new
lawyer to $600/hr or more for an established lawyer
 Some charge a percentage - typically 5% of the value
of the deal. That can mean, for example:
◦ 5% of initial advance paid to an artist under the contract
negotiated
◦ 5% of all advances paid under the contract
◦ 5% of all monies generated under the contract
 Some could charge a flat fee covering all expenses.

6. Attorney Fees
 Retainer: set monthly fee paid to attorney
to retain their services.
◦ Can be credited toward final bill or cover all
services.

7. Attorney Fees
 Value Billing
◦ Fee is based on the size of the deal and the
contribution of the attorney in shaping it.
◦ If lawyer had little to do with negotiating the
deal (just paperwork), bill should be close to
hourly rate.
◦ If lawyer dreamed up the deal, made the
introductions, negotiated and finalized the deal,
the fee will be much higher.
◦ Ask in advance what bill might be; at least get
a range.
◦ Pre-negotiate fee: “If I get you X, I get Y; 2X, I
get Z,” etc.

8. Conflict of Interest
◦ Conflict of interest occurs when attorney has
two clients that have opposing interests.
◦ Can happen when clients either sue each other
or want to make a deal with each other.
◦ In a relatively small industry like the music
business, this happens quite often.
◦ How do you resolve conflict of interest?

9. Conflict of Interest
Ways to avoid conflicts of interest:
◦ Both clients agree to ignore the conflict of
interest (waive the conflict) and continue
using the same attorney.
◦ Both clients get a new attorney (rare, unless
it’s serious!).
◦ One of the clients gets a new attorney (much
more common).
◦ Clients work out the deal with each other and
attorney just draws up the paperwork.

10. Conflict of Interest
Conflicts of interest aren’t limited to attorneys!
For example:
Business managers have a conflict when they
represent both manager and artist.
Managers can have a conflict when they are also
the artist’s publisher, producer, or both.
Why?

11. Attorney Checklist
 Do they have expertise in the music biz?
 What are their fees?
 Do they have a written agreement stating their fees?
 Do they object to independent review of agreement by
another lawyer, your manager, business manager, etc.?
 Get references from artists at your level and check them.
 Do they return phone calls? Get deals done in reasonable
amount of time?
 Do they foresee any conflicts of interest?
◦ Do they also represent your label, manager, etc.

12. Questions?